On US monetary policy:
There are speculations on Fed's decision on interest-rate. Given the current uncertainty in the US financial market, a lot of people really think the Fed has to cut the interest rate further to give a boost the economy.
Though in the short term the interest cut may prove to be useful, but it also tends to let those bad debts to live longer and make the financial blackhole formed by shaky sub prime market. In other words, an interest cut is like borrowing money to feed the debts. To paraphrase Buffett, when the market confidence drops and creditors start demanding their money back, the financial tide is out. At that time we will know who are swimming naked. Heh.
On Malaysia:
It seems Malaysia is pushing its Bolehness to another level by setting up more and more free trade zone. On the surface this looks ok, we want to attract FDI, but wait. What is the main feature of a FTZ? A hefty tax incentive. By having so many FTZ, where are the government's income? We could argue those FDIs will bring job opportunities, but if a government plays its card properly, it really doesn't need to hit so low-ball to keep distributing tax incentives. After 50 years, where are we, really?
Oh, I am confused.
2 comments:
Hey man! Don't diss the government's plan. After establishing all the corridors, we'll start a visit Malaysian corridor year. Think of all the tourists who will visit the many corridors. Profit. Yeah!
Hmm, my bad. I forgot we can establish a corridor hopping tour for the foreigners to enlighten them on how many corridors we have. Look, white elephants!! Here, there, everywhere.
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